Real Estate

Transfer: Owner-Occupied Property → Investment Property

Reclassifying a building the company previously used itself, now leased out to a third party.

Account NameTypeDebit ($)Credit ($)
Investment Property (at Fair Value)Asset (+)600,000.00-
Building (PPE at Cost)Asset (-)-500,000.00
Accumulated DepreciationContra-Asset (-)80,000.00-
Revaluation Surplus (OCI)Equity (+)-180,000.00

💡 Accountant's Note

When transferring from PPE to Investment Property at fair value, the gain is initially recognized in OCI (not P&L), consistent with PPE revaluation rules.

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